THERE ARE traditional and non-traditional investment opportunities that savvy investors can use to acquire a profit. While most people understand traditional investment options such as stocks, bonds, cash deposits, and the like, most investors aren’t properly acquainted with alternative investment opportunities.
Investing carries many risks; no matter how secure the vehicle may seem, there’s still an inherent risk. Alternative investments are riskier than traditional vehicles because most are unregulated and have a low correlation to standard asset classes. Additionally, these investments are highly illiquid, which means they cannot be sold or converted into cash as quickly as the investor wants. Investors who wish to try their luck with alternative investment vehicles must work with savvy finance professionals so they can navigate the nuances properly. It would be better to seek advice from local experts, so if you’re in the Kent area or thereabouts, you can seek expert financial advice Kent from professionals who can provide valuable insight and guidance. They will keep you in the black and thriving in the investment market.
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Here are some alternative investment opportunities you can consider.
Peer-to-peer lending
A relatively new concept, peer-to-peer lending provides loans to qualified individuals at an acceptable interest rate. Once the loan gets repaid, the investor receives a portion of it as their return on investment. However, there’s a higher risk involved with P2P lending because you’re servicing people who cannot go through the traditional route to secure loans. As a result, they typically are at a higher risk for default, and an investor may be unable to recoup their investment when this happens.
Gold
Savvy investors understand that purchasing gold products is a terrific investment. Gold is a highly liquid asset whose value appreciates. It has a low correlation to other assets, such as stocks, and can even be used as a rescue asset when times get tough. Investors can increase their exposure to the asset by purchasing actual gold coins, bullions, and bars. They can also buy gold exchange-traded funds and accounts or invest directly in gold mining options and stocks.
Equity crowdfunding
Another way to invest your hard-earned cash is through participation in equity crowdfunding initiatives. You’ll get to pool your investment with other like-minded individuals online who can purchase shares in startup companies that need immediate funding. The risk is if the company succeeds, the investor recoups the investment and earns depending on the company’s growth and liquidity. However, investors risk losing part or all of their money if the company doesn’t take off.
Collectables
One of the emerging investment opportunities that people can look into is collectables. This means purchasing one or more investable items such as rare wines, automobiles, baseball and basketball cards, stamps, mint-condition toys, and fine art. You’ll have to maintain these assets with the hope that their value will appreciate in the future. The risk is the volatility in the market, as these collectables can be a real gamble, and nothing is assured.
Endnotes
Savvy investors who wish to diversify their portfolios can look into alternative investment opportunities. However, these investment vehicles are not without great risk, so it’s important to do due diligence before sinking hard-earned cash into them.
